Clear Channel lower on Q1 earnings

But market takes news of surgery for CEO Mays in stride

DavidB. Wilkerson

SAN FRANCISCO (CBS.MW) -- Shares of Clear Channel Communications fell Tuesday after being up much of the session, following the radio behemoth's report of better-than-expected first-quarter results.

Investors shrugged off news that Clear Channel CEO Lowry Mays had successful surgery last Friday to relieve pressure from brain swelling that stemmed from localized bleeding and a small blood clot. Mays is expected to make a full recovery, the San Antonio-based company
CCU, -0.20%
said.

"Given underlying asset values and depth of management, we expect no negative impact on the stock due to this news," said Andrew Marcus, broadcasting analyst at Deutsche Bank Securities, in a note to clients. Marcus reaffirmed his "buy" rating on the shares Tuesday.

Clear Channel's stock fell 25 cents to close at $41.78, after being as high as $43.44 during the session..

Clear Channel posted first-quarter net income of $116.5 million, or 19 cents a share, up from $71 million, or 12 cents, earned in the year-earlier period. Excluding special items, including a gain from the sale of assets and a loss related to the early extinguishment of debt, earnings were 16 cents a share, exceeding by 2 cents the average analyst estimate compiled by Thomson First Call.

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